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Kim, Kim, SongHawk SongHawk June 20, 2002June 20, 2002
Lean Journey inChonan Factory
22 / 12 / 12
Lean Enterprise Lean Enterprise
Chonan Factory SnapshotChonan Factory Snapshot
• Factory Relocated to Chonan in 1995
• Introduce Lean Program in 1995
• COE : CCTV Camera, AoB, Industrial Switch(Global Launch)
• Certification : ISO9000, ISO14000,QS9000
• Awarded I.E Grand Prize in 1998
• Awarded Best Labor-Management in 2000 by Government
• Global R&D Center in 2001
33 / 12 / 12
Lean Enterprise Lean Enterprise
Products Products (ACS multi-functional operation)(ACS multi-functional operation)
Revenue - ‘Manufacturing + OEM Product
44 / 12 / 12
Lean Enterprise Lean Enterprise
Road Map Road Map for Chonan Lean Activityfor Chonan Lean Activity
Lean PreparationLean Preparationunder LG groupunder LG group
RestructuringRestructuringunder IMF crisisunder IMF crisis
Selective ConcentrationSelective Concentrationunder Six Sigma Plusunder Six Sigma Plus
- TPS benchmarking- Line Integration - Supply Chain Improve - 5S + Morale
- Flexible Work force- Outsourcing & Phase out- Sub Vendor Relocation
‘95 ~ ‘98
‘99~’00
‘01~’02
- World Best Products- Digitization- Six Sigma- Lean- NWT
‘01: USD 2,995K (YDT-Dec)‘02 Target : USD 1,500K
55 / 12 / 12
Lean Enterprise Lean Enterprise
ProductivityProductivity
• Visual Management
• U- Line
• Autonomation
• NWT (Natural Working Team)
• Supply Innovation Productivity = ( A-B ) / A’
A’ : Factory conversion cost in last yearA : Factory conversion cost in last year, adjusted by volume factorB : Factory conversion cost in current year, adjusted by inflation factor if ( A-B) > 0, The Productivity is favorable ( Increasing productivity)
CP Goal
8%
‘02 YTD-May
66 / 12 / 12
Lean Enterprise Lean Enterprise
Morale
77 / 12 / 12
Lean Enterprise Lean Enterprise
Visual Management - Andon
88 / 12 / 12
Lean Enterprise Lean Enterprise
U-Line - U-Line - CCD CameraCCD Camera
99 / 12 / 12
Lean Enterprise Lean Enterprise
Autonomation - AoB Line
1010 / 12 / 12
Lean Enterprise Lean Enterprise
NWT
1111 / 12 / 12
Lean Enterprise Lean Enterprise
Inventory TurnsInventory Turns
OTTP / OTTSOTTP / OTTS
11.00
14.20
16.00 16.00
2000 2001 2002 Goal 2002 May
97%
99%
90%
95%
90%
98%97%
97%
2000 2001 2002 Goal 2002 May
OTTP OTTS
CP Production Manufacturing + OEM Product ( OTTS : Production Manufacturing only )
• Kanban
• Supplier Relocation
• Consignment Stock
• Shuttle Truck
• Sub - Vendor council Meeting
Inventory - Supply chain
1212 / 12 / 12
Lean Enterprise Lean Enterprise
Kanban - BD Center
• On Lamp →
Shop Order
1313 / 12 / 12
Lean Enterprise Lean Enterprise
• Flexible Manufacturing System
- Lean / Outsourcing / Multi-player
• Certified Quality System
• Low Cost Investment
• Advanced logistics
• Full Process Capabilities in Biz System
•
R&DR&D
Supply
Supply Manufacturing Manufacturing Engineering Engineering Sales Sales Installation
(Project Mgmt.)
Installation
(Project Mgmt.) C / S C / S
Summary